Striking minimum wage prediction from SGK expert: It will exceed 17 thousand liras

The minimum wage, which was deposited into accounts as 11 thousand 402 liras last July, has begun to erode in the face of high inflation and foreign exchange rates.

There is talk behind the scenes that the government may implement a high rate of increase for the minimum wage before the 2024 local elections.

Evaluating the issue on SZC TV, Social Security Expert Özgür Erdursun emphasized that the year-end inflation target was set at 65 percent in the Medium-Term Program (OVP) and made a striking prediction for the raises to be given to the minimum wage and civil servant salaries.

LOWEST CIVIL SERVANT SALARY WILL RISE TO 29 THOUSAND LIRAS

SGK Expert Özgür Erdursun stated that the lowest civil servant salary will rise to 29 thousand liras, saying, "Civil servants will receive a raise of nearly 50 percent on their base salary, and 8777 liras will be added on top of that. The lowest civil servant salary will be 29 thousand liras. Teachers' salaries will also be around 36 thousand 500 liras."

"MINIMUM WAGE WILL EXCEED 17 THOUSAND LIRAS"

When asked, "What will the minimum wage be?", Özgür Erdursun gave the following response:

"As you know, the minimum wage is not determined according to inflation. The government has a freer hand in this regard. It wants higher increases. But even so, assuming there will be a 38 percent increase, it would be 15 thousand 700 liras. If a 50 percent raise is given to the minimum wage—and I think it will be 50 percent. Because an announcement was made that there would be no raise in July starting from 2024, and that it would be raised in January. That's why I think it will be around 50 percent. And the minimum wage will exceed 17 thousand liras. Its cost will also increase significantly."

Stating that employers will not prefer Turkish employees if the government does not provide support for the increasing cost of the minimum wage, Erdursun said, "If the state does not provide support for this increasing cost of the minimum wage, if there is no state support for insurance premiums... Unemployment will not increase due to the minimum wage, but if these figures rise like this, employers will resort to unregistered employment, not reporting the real figures while insuring them, or employing them without insurance. Their preference for Turkish employees will decrease. There must definitely be support in this regard as well," he said.

"THE GOVERNMENT LIKES INCREASING THE MINIMUM WAGE"

Saying that the government likes increasing the minimum wage, SGK Expert Özgür Erdursun noted the following:

"Otherwise, tradesmen and employers will do this. They will add the raise rate to the product or service they sell in January. Our goal in fighting inflation is not to increase input costs so that tradesmen and employers do not add them to the cost. How will this happen? The state will take responsibility for the insurance premium cost, and it will have increased its own revenue following these increases. Perhaps the government will waive a portion of the revenue it has increased. There might be such a minimum wage announcement.

But I don't even think these will be discussed. Between 38-50 percent, I think 50 percent. Because the government likes increasing the minimum wage. All governments like it. You work overtime on the minimum wage, and there is also tax on it. Most importantly, politicians increase their votes. Just as they are heading to an election, they increase the salaries of millions of minimum wage earners and dump the entire cost on tradesmen and employers. Then, in the election, they say, 'We made the minimum wage 17 thousand liras, vote for us.'"

"REGIONAL MINIMUM WAGE SHOULD BE DISCUSSED"

We are not talking about a regional minimum wage. It could be discussed in our country. Let's say a person in Hakkari has one person working for them. It is impossible for the turnover in that workplace to increase enough to pay this money. It is also impossible for someone in Istanbul to make a living with this money. We are not reinventing the wheel.

China, for example, implements it differently in agricultural regions and differently in industrial regions. If the minimum wage is 17 thousand liras now, as we said 50 percent of employees, 70 percent of employees will be minimum wage earners. The minimum wage cannot just be evaluated as the money that goes into your pocket right now; it also determines the pension you will receive when you retire.

"THE DREAM OF RETIREMENT WILL END"

That 70 percent we mentioned earlier will be the employees who are candidates for the lowest pension, which we now call 7500 liras. There will be no dream of retirement left. If this doesn't remain, then there will be no work, no work order."

News Source: 12punto